Things have kicked off pretty swiftly at the PIC inquiry.

According to the PIC, the suspensions followed findings of a preliminary investigation report submitted to the board on Monday.

“Following responses that were given to SCOPA in Parliament in December 2018, the Public Investment Corporation board resolved to commence an investigation into the Ayo Technology Solution transaction, with specific focus on the role that employees of the PIC may have played,” the PIC said.

PIC ousts two of its senior executives

The preliminary report clearly reflects a blatant flouting of governance and approval processes of the PIC.

“Employees of the PIC have also been implicated in these irregularities. It is for this reason that the board has resolved to suspend the Executive Head of Listed Investments, Mr Fidelis Madavo and the Assistant Portfolio Manager: Mr Victor Seanie with immediate effect,” the statement reads.

As this is an ongoing investigation, the board will keep all its stakeholders informed on the developments.

PIC inquiry to clean up Africa’s largest investment company

Announced in October 2018 by President Cyril Ramaphosa, the Judicial Commission of Inquiry is investigating allegations of impropriety following reports of poor governance and precarious investment processes.

The PIC is the only investment management company in South Africa that focuses exclusively on the public sector.

It is one of the largest investment managers in Africa, managing assets worth over R2.083 trillion. As a registered financial services provider, the cooperation is wholly owned by the South African government, with the Minister of Finance as shareholder representative.

The commission’s terms of reference include a review of the PIC’s governance and operating model, possible changes to the PIC’s founding legislation and its Memorandum of Incorporation and investment decision-making framework.

The inquiry is led by former President of the Supreme Court of Appeal, Justice Lex Mpati, who will be assisted by the former South African Reserve Bank Governor and Deputy Minister of Finance, Gill Marcus, as well as an accomplished investment banker and asset manager, Emmanuel Lediga.

The PIC said it continues to uphold good corporate governance and will do everything in its power to restore the integrity of the institution.